Correlation Between Grupo Sports and UnitedHealth Group
Can any of the company-specific risk be diversified away by investing in both Grupo Sports and UnitedHealth Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grupo Sports and UnitedHealth Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Sports World and UnitedHealth Group Incorporated, you can compare the effects of market volatilities on Grupo Sports and UnitedHealth Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Grupo Sports with a short position of UnitedHealth Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Sports and UnitedHealth Group.
Diversification Opportunities for Grupo Sports and UnitedHealth Group
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and UnitedHealth is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Sports World and UnitedHealth Group Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UnitedHealth Group and Grupo Sports is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Grupo Sports World are associated (or correlated) with UnitedHealth Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UnitedHealth Group has no effect on the direction of Grupo Sports i.e., Grupo Sports and UnitedHealth Group go up and down completely randomly.
Pair Corralation between Grupo Sports and UnitedHealth Group
Assuming the 90 days trading horizon Grupo Sports World is expected to generate 1.21 times more return on investment than UnitedHealth Group. However, Grupo Sports is 1.21 times more volatile than UnitedHealth Group Incorporated. It trades about 0.08 of its potential returns per unit of risk. UnitedHealth Group Incorporated is currently generating about 0.03 per unit of risk. If you would invest 294.00 in Grupo Sports World on August 26, 2024 and sell it today you would earn a total of 346.00 from holding Grupo Sports World or generate 117.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Sports World vs. UnitedHealth Group Incorporate
Performance |
| Timeline |
| Grupo Sports World |
| UnitedHealth Group |
Grupo Sports and UnitedHealth Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Sports and UnitedHealth Group
The main advantage of trading using opposite Grupo Sports and UnitedHealth Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Sports position performs unexpectedly, UnitedHealth Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in UnitedHealth Group will offset losses from the drop in UnitedHealth Group's long position.| Grupo Sports vs. Samsung Electronics Co | Grupo Sports vs. Delta Air Lines | Grupo Sports vs. Grupo Hotelero Santa | Grupo Sports vs. DXC Technology |
| UnitedHealth Group vs. DXC Technology | UnitedHealth Group vs. Verizon Communications | UnitedHealth Group vs. Grupo Sports World | UnitedHealth Group vs. CVS Health |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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